BUSINESS IDEA | VENTURE STARTUP

Cold Plunge Converter 🛁 

Take the plunge

Available Domain: Plungefy.com

1. Problem/Opportunity❓

The Problem/Opportunity: Cold plunge is THE THING right now. Cold plunge aficionados swear by them and their benefits. While the health benefits of cold plunge are still debated one thing is for sure…if someone cold plunges, they’re gonna tell you about it.

But there’s a problem. Cold plunges are super expensive. A good one can easily set you back $5k. Some people resort to making their own cold plunges out of freezers, but not everyone has the space to. But almost everyone has a bathtub. So why not enable everyone to convert their bathtubs into cold plunges?

Market Size: Global Cold Plunge Tub Market size was valued at $336bn in 2022

2. Solution ✅

The Idea: A device used to convert a bathtub into a cold plunge

How it Works:

• The device has three main parts: a chiller, a pump and a thermometer. The water is pumped from the tap through the chiller and into the tub, which keeps the water cold

• The thermometer is then used to monitor the temperature of the water so it get as cold as the customer wants

• The tub is emptied and refilled every 3 - 4 cold plunge sessions

Go-to-market: Reddit is crawling with posts about people who have tried to build their own cold plunges. Work with them to test out and refine the product

Business Model: Charge $500 - $800 per device (estimation)

Startup Costs: You’d need to do a raise here to get this off the ground and to do manufacturing at any meaningful scale

Competitors: HomePlunge are building something similar, however they haven’t launched yet and their price point is too high

3. How You’ll Get Rich 💰

Exit Strategy: This is a bit of a fad product, so the goal here should be to get in and out quickly. Sell to Plunge or another big player in the market

Exit Multiple: Tech hardware businesses tend to sell for c.2x revenue or 10x EBITDA, so get to profitability asap!

TOGETHER WITH BLACKBIRD STARTUP STORIES

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DRUNK BUSINESS IDEA

Domain Buying App

If you’re a founder, or an aspiring founder, you almost certainly suffer with an addiction. You’re addicted to buying domain names, usually for businesses that you never start.

Well not anymore! This new app monitors your domain purchasing behaviour and gives you a gentle nudge that it might not be the best idea to buy yet another domain.

JUST THE TIP

Trend 📈: Fiber is Making a Comeback

Fiber, as a supplement, is being slept on. An estimated 95% of American adults and children are deficient in fibre which can lead to constipation, irritable bowel syndrome (IBS), heart disease and some cancers. Thanks Dr Google!

And it seems like people are catching on, which presents a massive opportunity.

Business Ideas:

• Build the Create for fibre supplements

• Functional beverages fortified with dietary fiber

THE MONEYSHOT

$0 to a $2bn Exit in 2 Years

Palmer Luckey is a smart guy. Like a really smart guy.

At the age of 16 Palmer started building VR headsets of his own design. He completed his first prototype, called PR1, at age 17 in his parents' garage. 6 iterations later he had created the “Oculus Rift” and in April 2012, Oculus VR was launched.

While the product was ready for primetime Palmer still needed money to start building these headsets at any meaningful scale. So he turned to Kickstarter.

The campaign was a huge success, with Palmer raising $2.4m. He dropped out of college to focus on building the business full time and proceeded to work his ass off for the next 2 years. Why 2 years?

Well because after just 2 years in business he got an offer from Zuck he couldn’t refuse. So in March 2014, Oculus was acquired by Facebook for $2bn.

While Oculus was an unbelievable success Palmer set his sights even higher with his latest venture, Anduril, a defense company that manufactures advanced autonomous weaponry and systems for the US military.

In 2022 Anduril landed $1.5bn in funding at a $8.5bn valuation, dwarfing what Palmer achieved with Oculus.

Like I said…Palmer is a really smart guy.